OREANDA-NEWS. September 07, 2010. The Government plans to reform the pension system so as to improve the financial state of pensioners. Prime Minister Mykola Azarov said this at the presentation of the draft Tax Code.

Mykola Azarov has reminded that in 2004 the Government led by Viktor Yanukovych started reforming the pension system, carried out its first stage associated with the differentiation of pensions.

The Prime Minister has said that the Government today is working to ensure well the second phase of the pension reform, associated with transition from the pay-as-you-go pension scheme to a financial defined system of individual pension accounts. But, according to him, reforming of the pension system should be implemented in such a way "that pension reform leads to a pensions increase, improvement of the financial state of pensioners.

In Mykola Azarov’s opinion, the problem can be solved as follows: "We should interest, first of all, the employee and the employer to provoke incentives for the payment of wages legally, but not in envelopes ... We will motivate and encourage employees to transfer funds to individual account.

"In any case, we should certainly reduce contributions to the pay-roll fund, but do that in a way that ultimately our people, both present and future, will have won and not lost", stressed the Head of the Government.

Mykola Azarov has added that the Government plans to carry out the pension reform after the economic recovery.